Placement had been tradeable by Friday so the capacity to flip the stock and stag a profit already exists. SP has held up very well despite this so no more selling pressure as a consequence of the placement is expected.
Got to remember that delayed drilling results are being experienced across the sector. Impossible to get assays back in a timely fashion. This does not let management off the hook, they have not managed expectations well.
Must admit I am always dubious when mgmt raise money with drill results outstanding but it may also mean nothing. The SP was at a relative high, gold had just posted a new high and the company is now chasing two mineralised horizons which costs more. Three good reason to raise capital now.
One thing is for sure if the results are poor it will only further entrench investor cynicism. Rightfully so too.
GOA Price at posting:
3.9¢ Sentiment: LT Buy Disclosure: Not Held
